Explanation:

In the case of an export subsidy, exporters are incentivized to shift sales from the domestic market to the export market because they receive the international price plus the per-unit subsidy for each unit exported. This scenario raises the price of the good in the domestic market by the amount of the subsidy in the small country case (price before subsidy plus subsidy). As a result, the domestic price increases, leading to a decline in domestic consumption rather than an increase (Option A is incorrect).

Option C is incorrect because export subsidies, while aimed at stimulating exports, interfere with free market functioning and distort trade away from comparative advantage. The net welfare effect is negative in both large and small country cases, reducing rather than increasing national welfare.

Thus, the correct answer is B, as the export subsidy most likely increases the price of the good in the domestic market.